Carrying Amounts and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

Fair value measurements, recurring basis

Assets measured at fair value on a recurring basis at March 31, 2017 were as follows:



Assets:	Quoted Market Price In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
FHLB Securities	$	—	$	994,750	$	—
SBA Bonds	—		126,424,257		—
Tax Exempt Municipal Bonds	—		80,449,101		—
Taxable Municipal Bonds			2,010,839
Mortgage-Backed Securities	—		171,440,438		—
Equity Securities	—		155,000		—
Total	$	—	$	381,474,385	$	—

10. Carrying Amounts and Fair Value of Financial Instruments, Continued

Assets measured at fair value on a recurring basis at December 31, 2016 were as follows:



Assets:	Quoted Market Price In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
FHLB Securities	$	—	$	998,000	$	—
SBA Bonds	—		101,906,059		—
Tax Exempt Municipal Bonds	—		71,535,149		—
Taxable Municipal Bonds			1,991,130
Mortgage-Backed Securities	—		185,261,091		—
Equity Securities	—		368,000		—
Total	$	—	$	362,059,429	$	—

Fair value measurements, nonrecurring basis

The table below presents assets measured at fair value on a nonrecurring basis at March 31, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy within which those measurements fall.



Assets:	Level 1		Level 2		Level 3		Balance at March 31, 2017
Mortgage Loans Held For Sale	$	—	$	1,118,752	$	—	$	1,118,752
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		8,634,578		8,634,578
Foreclosed Assets	—		—		2,055,401		2,055,401
Total	$	—	$	1,118,752	$	10,689,979	$	11,808,731

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF $}^1,352



Assets:	Level 1		Level 2		Level 3		Balance at December 31, 2016
Mortgage Loans Held For Sale	$	—	$	4,243,907	$	—	$	4,243,907
Collateral Dependent Impaired Loans ⁽¹⁾	—		—		8,313,745		8,313,745
Foreclosed Assets	—		—		2,721,214		2,721,214
Total	$	—	$	4,243,907	$	11,034,959	$	15,278,866

^{(1) IMPAIRED LOANS ARE REPORTED NET OF SPECIFIC RESERVES OF}^$14,289

Significant unobservable inputs used in the fair value measurements

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis at March 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows:



			Valuation	Significant
	Fair Value		Technique	Unobservable Inputs	Range
Collateral Dependent Impaired Loans	$	8,634,578	Appraised Value	Discount Rates/ Discounts to Appraised Values	0% - 16%

Foreclosed Assets	2,055,401		Appraised Value/Comparable Sales	Discount Rates/ Discounts to Appraised Values	10% - 100%

Summary of the carrying value and estimated fair value of financial instruments

The following tables are a summary of the carrying value and estimated fair value of the Company’s financial instruments at March 31, 2017 and December 31, 2016 presented in accordance with the applicable accounting guidance.



	March 31, 2017
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	28,769	$	28,769	$	28,769	$	—	$	—
Certificates of Deposits with Other Banks	1,595		1,595		—		1,595		—
Investment and Mortgage-Backed Securities	409,898		409,802		—		409,802		—
Loans Receivable, Net	355,225		353,417		—		—		353,417
FHLB Stock	2,346		2,346		2,346		—		—

Financial Liabilities:
Deposits:
Checking, Savings, and Money Market Accounts	$	462,792	$	462,792	$	462,792	$	—	$	—
Certificate Accounts	234,888		233,173		—		233,173		—
Advances from FHLB	38,000		37,757		—		37,757		—
Other Borrowed Money	9,787		9,787		9,787		—		—
Note Payable	12,000		12,000		—		12,000		—
Senior Convertible Debentures	6,084		6,084		—		6,084		—
Junior Subordinated Debentures	5,155		5,155		—		5,155		—



	December 31, 2016
	Carrying		Fair Value
(In Thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	9,375	$	9,375	$	9,375	$	—	$	—
Certificates of Deposits with Other Banks	2,445		2,445		—		2,445		—
Investment and Mortgage-Backed Securities	387,643		387,430		—		387,430		—
Loans Receivable, Net	359,723		357,457		—		—		357,457
FHLB Stock	2,777		2,777		2,777		—		—

Financial Liabilities:
Deposits:
Checking, Savings, and Money Market Accounts	$	438,559	$	438,559	$	438,559	$	—	$	—
Certificate Accounts	215,545		214,149		—		214,149		—
Advances from FHLB	48,395		48,153		—		48,153		—
Other Borrowed Money	9,338		9,338		9,338		—		—
Note Payable	13,000		13,000		—		13,000		—
Senior Convertible Debentures	5,155		5,155		—		5,155		—
Junior Subordinated Debentures	6,084		6,084		—		6,084		—